Slimming margins, technology and leadership

Anyone with or without a slide rule can see that net interest margins have been getting skinnier over these past 15-20 years.  You have noticed this, right? In fact, Credit Union net interest margins have decreased 12% in just the past 36 months.

All areas of the management team need to understand this unfortunate fact.  And how will margins be impacted when interest rates begin to rise in earnest?

The C-Level part of management; Executive, Financial, Information, Technology, Lending and Marketing should all be up to speed on the dangerous “spread” journey the entire industry is on.  How and what can each part of the team bring to assist in improving your Credit Union’s short and long term position?

And what about the need for every Credit Union to provide “up to date” delivery channels; i.e. mobile, remote deposit capture and on-line prowess?  How much is enough?  Will a big bet on new technology doom your Credit Union?

Without a clear course of action, many credit unions will find themselves left with no choice but to merge, consolidate, acquire, or be acquired. There will be a blood.  Leadership is required today to plan for these future realities.

As a leader in the industry – what do you suggest a C-Level group do to manage this market dynamic?  The world is getting smaller every day.  Can anything be done?

It is a great deal easier to be a Monday morning Quarterback…

Anyone wish to lead on this issue?

Jay Kassing

Jay Kassing

Jay Kassing is President of MARQUIS, a Texas based provider of marketing analytics solutions including MCIF/CRM software, MCIF services, profitability, compliance, consulting and direct mail creative/fulfillment. Jay has ... Web: www.gomarquis.com Details